conduct a breakeven analysis for the following project : A Invesment (OR) 888340.95 to be sold...

conduct a breakeven analysis for the following project :

	A
Invesment (OR)	888340.95
to be sold unit /year	32000
variable cost OR/unit	1.596
selling price OR/unit	25
Annual expenses/year	499517
MV (OR)	200000
useful life	10

Expert Solution

Contribution Per Unit = Selling Price - Variable Cost per unit

= 25-1.596 = 23.404

Annual Fixed Expenses = Annual Expenses + Depreciation

= 499517 + (200,000/10)

=499,517+20,000 = 519,517

Brek Even Number of Units to sold is when the contribution from sales = Total Annual Fixed Expenses

23.404*Number of Units = 519,517

Number of Units = 519,517/23.404 = 22,198 units

If we sell 22,198 units the profit for the year will be 0, hence breakeven.

ekkarill92 answered 1 year ago

Learning objective: This project is designed for you to compute contribution margin, and conduct breakeven and...

Learning objective: This project is designed for you to compute contribution margin, and conduct breakeven and what-if analyses by using Excel spreadsheets. Requirements: Please complete the calculations for the following problem in Excel spreadsheets. You can use Project 1 Format.xlsx to work on the project. A lot formulae are inserted in the comments of the spreadsheet file for your reference. Setting the formulae by referencing to the data in Excel spreadsheets is required. Problem set A computer store has sale...

Please provide a general discussion on breakeven analysis and multiple products and breakeven analysis and its...

Please provide a general discussion on breakeven analysis and multiple products and breakeven analysis and its core assumptions with its formula. PLEASE MAKE SURE TO ANSWER IN MORE THAN 350 WORDS IN WORD FORMAT ONLY. Please do not copy paste from wikipedia,inclopedia websites. Thanks

Discuss ways that breakeven and sensitivity analysis might be used together in evaluating a project. Which...

Discuss ways that breakeven and sensitivity analysis might be used together in evaluating a project. Which one would you use first and why? (There is no right or wrong answer here; I'm interested in your thoughts on how to apply these analytical methods.)

How and when do you use the following tools: Sensitivity Analysis Breakeven Analysis Conjoint Analysis

In financial management, what is the importance of completing a breakeven analysis? How does a breakeven...

In financial management, what is the importance of completing a breakeven analysis? How does a breakeven analysis help organizations budget in the short and long term? How does the breakeven analysis connect revenues and expenses for specific initiatives?

a. Analyze the following Graph and the breakeven point and discuss how this analysis is used...

a. Analyze the following Graph and the breakeven point and discuss how this analysis is used for decision making? b- If fixed costs are $400,000, selling price per unit is $150, and variable cost per unit is $100, how many units must the company sell in order to earn a profit of $ 100,000?

1. Conduct a Benefits-Cost Analysis on the following Highway Project using: Initial Costs of Tunnel. =...

1. Conduct a Benefits-Cost Analysis on the following Highway Project using: Initial Costs of Tunnel. = $5,000,000 Annual costs for operating/maintenance = 150,000 Annual savings and benefits to travelers = 250,000 Residual value of benefits after horizon = 350,000 Useful life of investment = 30 years Interest Rate = 6% a. Find B-C Ratio of Annual Worth b.Find B-C Ratio of Future Worth c.Find B-C Ratio of Present Worth

Breakeven Analysis A. Calculate the breakeven (with profit) volume given the information below. Create an income...

Breakeven Analysis A. Calculate the breakeven (with profit) volume given the information below. Create an income statement proving your calculated volume produces the desired profit. What will happen to profit if actual volume is 10 cases more than breakeven volume? AVC = $2,500 TFC = $1,200,000 Profit = $100,000 Price = $4,320 B. Calculate breakeven volume if total fixed cost increases by 8%. C. Calculate breakeven volume if average variable cost increases by 5% with the original (part A) TFC.

Cost-volume-profit analysis can be considered a more complex form of breakeven analysis. Which of the following...

Cost-volume-profit analysis can be considered a more complex form of breakeven analysis. Which of the following is an example of this? Question 18 options: Sara realizes she needs to sell 50 cakes a month to cover all of her variable and fixed costs Sara looks at raising the prices of her cakes to see how much more revenue will be generated Sara decides to remove carrot cakes from her menu because they do not sell as well the others Sara...

Consider the following information as part of a breakeven analysis: Cost of Production: Number of Units...

Consider the following information as part of a breakeven analysis: Cost of Production: Number of Units Cost ($) 0 o 700 4,900 Cost of Buying Number of Units Cost ($) 0 1,500 700 3,600 What would be the equation for the production cost? What would be the equation for the buying cost? What is the breakeven # Unis? What is the breakeven amout? If you were only interested in 400 units, which option should be selected? If you were only...

Question